NextEra Energy ($NEE) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.

S.D. Florida

Court

9:23-CV-80833

Case number

12/02/2021

Class period Start

01/30/2023

Class period End

NextEra Energy reached a tentative settlement to resolve investor claims tied to alleged covert political spending by Florida Power & Light, false public denials, and the resulting legal and reputational risks.

Outline:

In 2019 and 2020, FPL allegedly used Matrix to influence Florida politics through ghost candidates, JEA-related pressure tactics, and attacks on critics. On December 2, 2021, media reports tied FPL to those efforts, but the company denied involvement. On January 25, 2022, NextEra said an internal review found no basis for the allegations, despite a November 2021 memorandum linking FPL executives to the conduct. On January 25, 2023, NextEra disclosed legal and reputational risks tied to the scandal, $NEE fell 8.7%, and the case moved to a tentative settlement.

Timeline:
July 23, 2019: JEA’s board authorized the sale process that led to FPL’s bid to buy the utility.
November 3, 2021: Robo received a memorandum linking FPL officers and Matrix to covert political spending and related schemes.
December 2, 2021: The Orlando Sentinel reported that FPL executives had worked closely with consultants behind the ghost-candidate scheme.
January 25, 2022: Robo said an internal investigation found no evidence supporting the allegations.
January 25, 2023: NextEra disclosed that the allegations could lead to findings of legal violations, fines, penalties, sanctions, and reputational harm.
January 25, 2023: $NEE fell 8.7% after the disclosure and Silagy’s removal.
March 2026: Nextera agreed to settle to resolve an investor lawsuit related to these events.
Background:

NextEra is the parent of Florida Power & Light, the largest public utility in Florida. The case says FPL was presented to investors as a stable and lower-risk utility business, even while it was allegedly involved in covert political activity that exposed the company to serious legal and reputational danger.

A major part of the dispute involved FPL’s relationship with political consulting firm Matrix. Investors say Matrix and FPL used a chain of nonprofits and related entities to move money into Florida campaigns, including support for spoiler or ghost candidates meant to siphon votes away from candidates FPL opposed.

The allegations also extended beyond election spending. During FPL’s effort to buy the Jacksonville Electric Authority, Matrix allegedly used Grow United to extend a phony job offer to a Jacksonville city councilor who opposed privatization, and Matrix operatives also allegedly surveilled a journalist who had written critically about FPL and the JEA process.

The case further alleges that FPL and Matrix covertly gained control over the Capitolist, a Florida political news site, and used it to promote FPL-friendly coverage while attacking political opponents, reporters, and other critics. According to the source, FPL money flowed through intermediary entities to fund and manage that effort.

When reporting on these issues began in December 2021, FPL publicly denied involvement. Investors say those denials were misleading because a November 2021 memorandum had already tied FPL executives to the underlying conduct. 

On January 25, 2023, NextEra finally warned investors that the allegations could lead to legal findings, fines, penalties, sanctions, and reputational harm, and the stock dropped sharply. The matter has now moved to a tentative settlement.

What Can Investors Expect Now?

NextEra Energy reached a tentative settlement to resolve investor claims tied to alleged covert political spending by Florida Power & Light, false public denials, and the resulting legal and reputational risks.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Tentative Settlement

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Filing date

05/26/223

Lead Plaintiff Deadline

07/25/2023

Plaintiffs

Maha Jastram

Attorneys

Block & Leviton LLP (Boston, MA), Edelsberg Law, PA (Aventura, FL)

Defendants

James Robo, Eric Silagy, David P. Reuter

Trades matching type

FIFO

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